U.S. Nuclear Investment: A 32 Trillion-Won Jackpot for Doosan Enerbility?

[Financial News] The government is reportedly reviewing a $120 billion project to build eight nuclear power plants in the United States as its second investment project there. The project could generate large-scale orders for Doosan Enerbility, which effectively holds a monopoly on the supply of major nuclear-power equipment. Based on previous exports of large nuclear power plants, the orders are estimated to be worth about 32 trillion won.
According to ruling-party and industry sources on the 10th, the second project following the 30 trillion-won construction of the Encinal gas-fired combined-cycle power plant in Texas will involve building large nuclear power plants in the United States. The two sides have reached a broad agreement to build eight reactors at a cost of $120 billion, including two Korean-designed APR1400 reactors.
When the Dukovany nuclear power plant in the Czech Republic was exported in 2024 and the Barakah Nuclear Power Plant in the United Arab Emirates was exported in 2009, Doosan Enerbility was responsible for supplying the major equipment. As South Korea’s only company that manufactures major nuclear equipment, it has supplied reactor vessels, steam generators and other equipment not only for the APR1400 but also for Westinghouse Electric Company’s AP1000 reactors.
If construction of the U.S. nuclear plants moves forward, Doosan Enerbility is also highly likely to serve as the supplier of major equipment this time. For the 26 trillion-won Dukovany nuclear power plant project, it signed a supply contract worth 5.6 trillion won. For the 20 trillion-won Barakah Nuclear Power Plant project, it signed a contract worth 4.3 trillion won. Those amounts represent about 20% of the total project costs. Based on this, analysts predict that Doosan Enerbility could land a 32 trillion-won “jackpot” from the 161 trillion-won U.S. nuclear project.
Some observers believe Doosan Enerbility’s share could be larger than in the past. This is because the possibility has emerged that South Korea could secure Westinghouse Electric Company’s stake, which previously shared equipment supply. The U.S. side is reportedly seeking to sell the stake. The Korea Energy Economics Institute estimated that major equipment, including reactors and turbines, accounts for between 15% and 30% of the total construction cost of a large nuclear power plant. A Samil PricewaterhouseCoopers report also put the figure in the 30% range. On that basis, the potential value could be estimated at up to 40 trillion won.
Doosan Enerbility said that supplying the major equipment should be feasible because construction of the eight reactors would necessarily take place over an extended period. Industry officials believe that South Korea and the United States would have thoroughly assessed the company’s production capacity while discussing the nuclear project, given that Doosan Enerbility is effectively the exclusive supplier.
[email protected] Kim Yun-ho Reporter